Partial Disallowance Upheld as Assessee Failed to Prove Full Business Nexus of Expenses

BSM Developers Pvt. Ltd. Vs ACIT (ITAT Delhi) The appeal before the Income Tax Appellate Tribunal arose from the order of the Commissioner of Income Tax (Appeals) for Assessment Year 2014–15, wherein disallowance of business expenses amounting to ₹22,41,977/- was largely upheld. The Assessing Officer had observed that the assessee declared a loss under the head “Business & Profession” while deriving substantial income from house property. Out of total income of ₹91,54,878/-, a major portion constituted rental income, and only a minor amount was shown as business income, including...